- The Japanese government is considering allowing startups to raise capital with crypto assets instead of stocks.
- FSA proposes tax code changes, exempting local businesses from year-end crypto gains tax.
- Binance re-enters the Japanese market, offering services after acquiring the Sakura Exchange Bitcoin platform.
According to reports from local media, the Japanese government is purportedly considering allowing startups to raise capital from the public by issuing crypto assets, such as cryptocurrencies, as an alternative to traditional stocks. The new system is said to be tailored for a specific type of investment fund known as Investment Business Limited Partnerships (LPS). Japan has previously been seen as somewhat slow in adopting digital assets compared to other countries, but recent developments indicate a shift in this stance.
“The government relaxes regulations on the financing of startups. When startups receive investment from investment funds, they will be able to give crypto assets (virtual currencies) instead of stocks.”
the report by Nikkei
On August 31st, the Financial Services Agency (FSA), Japan’s primary financial regulatory authority, took a significant step towards enhancing cryptocurrency regulation by proposing changes to the tax code pertaining to cryptocurrencies. This move is particularly notable as it seeks to grant local businesses an exemption from the year-end tax on “unrealized gains” from cryptocurrencies.
During the WebX conference in Tokyo, Japan, Prime Minister Fumio Kishida reiterated the country’s dedication to nurturing the Web3 industry. In his keynote address on the conference’s opening day, he emphasized the industry’s potential to revolutionize the internet and ignite social transformation.
As reported by local media, the Financial Services Agency (FSA) submitted its request on August 31st. Among the noteworthy proposals outlined in the 16-page document, a key one aims to relieve domestic companies from the year-end “unrealized gains” tax on cryptocurrencies. While in some countries, legal entities are only taxed when they convert crypto assets into fiat currency through a sale, Japan currently imposes taxes on crypto holdings on an annual basis.
Binance has officially confirmed to Cointelegraph that it has commenced offering its services to Japanese cryptocurrency users starting in August. This development follows Binance’s acquisition of the local exchange platform Sakura Exchange Bitcoin in November 2022, marking its re-entry into the Japanese market.
Japanese Prime Minister Fumio Kishida restated Japan’s dedication to nurturing the Web3 industry, emphasizing its capacity to revolutionize the internet and ignite social transformation. Kishida delivered these remarks during a keynote address on the first day of the WebX conference in Tokyo, Japan, as initially reported by local media outlet CoinPost. On that very day, Binance CEO Changpeng Zhao disclosed plans for the cryptocurrency exchange to launch its services on a new Japanese platform in August 2023.
